In line with Langley Brewery, the annual beer tax hike is hurting the corporate – Aldergrove Star

The owner of a well-known Langley brewery is one of many in the industry calling for an annual federal tax increase on beer to be withdrawn this year.

Derrick Smith, CEO of Dead Frog Brewery, said the excise tax on beer is the only tax that increases every year due to inflation.

"This is death by a thousand cuts," said Smith. "No other tax does that."

He noted that breweries face a choice each year – pay the cost or pass it on to their customers.

Beer Canada, an industry group, is calling for the tax to be cut this year in the government's next federal budget, expected this month.

"Continuing to raise taxes on beer amid the pandemic is counterproductive to the government's goal of helping the recovery of Canada's hardest-hit businesses, including restaurants and bars," said Luke Chapman, interim president of Beer Canada. "The last thing Canadians need now is higher taxes."

The tax was introduced in March 2017 and increases automatically on April 1st each year.

The tax is levied at the brewery level so consumers won't see it on their receipt at the liquor store or pub.

READ MORE: Langley's Dead Frog Brewery is offering free six packs to people on the front lines of COVID-19

The tax comes as brewers expect restrictions across the country to increase as COVID numbers rise in Canada's most populous provinces. B.C., Quebec, and Ontario have recently tightened all restrictions to stop the virus from spreading, including a renewed ban on indoor eating in B.C.

Smith noted that the tax hike will come as Dead Frog had to close its tasting room to comply with the newly tightened regulations.

"Bars and restaurants in particular have been hit hard and will need the support of all of their suppliers, including beer makers," said Andrew Oland, President and CEO of Moosehead Breweries. “Brewers across the country are finding ways to support and help our bar and restaurant partners, but we need to strengthen the government and create the conditions that allow us to continue to support the recovery. The increase in beer taxes does exactly the opposite. "

Smith said the Canadian Craft Brewery Association is also working to completely remove the excise tax from any brewer producing less than 10,000 hectoliters per year.

He estimates that it would allow community-based brewers to save and contribute up to $ 30,000 more per year to the local economy.

Beer Canada's ongoing campaign against the excise tax hike is known as the "Freeze it for Them" campaign and has garnered signatures at www.freezeitforthem.ca.

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